A study from Shandong Technology and Business University uses game theory to explore rural distributed photovoltaic (PV) development from a prosumer lens. It identifies village-PV enterprise collaboration as key to scaling adoption, highlights the need to balance self-consumption and grid capacity to avoid curtailment, and provides targeted policy guidance for rural energy transitions.

Electric vehicles could become economically competitive in many African countries before 2040. Off-grid solar solutions make charging possible even in places with no or unreliable electrical grids. Major challenges remain in terms of financing, with high interest rates slowing down adoption, despite drops in cost of technology.

Abstract

Purpose – This paper aims to systematically investigate and compare the hedge and safe-haven properties of stablecoins against international indices. It distinguishes itself from the existing literature by examining how risk-mitigation capabilities differ based on a stablecoin’s underlying collateral mechanism.

Design/methodology/approach – The authors employ a DCC-GARCH model to analyze the time-varying correlations between a large sample of 44 stablecoins and 30 international indices from October 2022 to September 2024. A core innovation is the systematic classification of stablecoins into five distinct categories (fiat-backed, algorithmic, crypto-collateral, physical gold-backed and synthetic assets-backed) to conduct a granular comparative analysis. Rolling window analysis is also utilized to assess these properties over shorter investment horizons.

Findings – The study reveals that hedge and safe-haven properties are highly heterogeneous and depend critically on the stablecoin’s design. Synthetic assets-backed stablecoins demonstrate overwhelmingly superior performance, acting as a strong hedge and weak safe haven for 21 of the 30 indices analyzed. In stark contrast, fiat-backed stablecoins, the largest market segment, exhibit very limited risk-mitigation capabilities.

Practical implications – The findings provide crucial insights for both investors and policymakers. Investors seeking portfolio diversification should not treat all stablecoins as equal; synthetic asset-backed stablecoins are shown to be far more effective for managing risk against global equity downturns. For regulators, the paper highlights the urgent need for stringent oversight of fiat-backed reserves, while also noting that the effective but complex nature of decentralized synthetic stablecoins presents a different set of regulatory challenges and opportunities.

Originality/value – This paper makes a significant contribution by providing the first comprehensive, classification-based analysis of stablecoins’ role as potential risk-mitigation assets against a broad array of international stock indices. It challenges the monolithic view of “stablecoins” by empirically demonstrating that the underlying collateral design is the key determinant of their effectiveness as a hedge or safe haven.